How do you feel about the numbers side of your business? Are you puzzled? Afraid? In denial? Getting to grips with the numbers and finances of your business is crucial to its success.
The Bottom Line
My earliest memories of money are the words ‘there isn’t enough.’
Later, in my teens I wasn’t a great saver, but I would be disciplined if I really wanted something, like the latest Gabicci tracksuit or a Lyle and Scott jumper, which were both the height of fashion in the 80’s.
I saved for my first flat while still living with my family, getting together a deposit and buying essential items before moving in. I worked a full time job in marketing and a second Sunday job to achieve this.
Fast forward to when I started my business; my attitude was that I wanted and needed to earn money, but I really didn’t want to manage it. Although I know how to use spreadsheets – I was a dab hand with a pivot table at one point in my life – I went into the work I do because I love the powerful transformation that coaching creates rather than keeping financial records about it.
A few years ago, I found myself with plastic bags full of receipts, the end of year looming and the feeling of dread that I was going to have to sit at a computer entering them into a spreadsheet to be advised how much money I owed.
I would book time out of my diary to do the feared task, and either procrastinate or be too busy. So I finally bit the bullet and got a bookkeeper. I gratefully handed over my bags of receipts and she painstakingly tallied them all up and queried anything that wasn’t clear. This was a revelation to me and I felt a huge weight lift from my shoulders.
A Game Changer
What was even better is that she started producing financial reports for me, letting me know about outstanding invoices, who my top customers were, how much my company was bringing in and sharing trends from my business. I quickly shifted to understanding that the numbers mattered. The better I understood them, the easier it would be to grow my business.
My Top Tips
If you’re struggling with getting a handle on your business numbers, or just want to be better, here are my 5 top tips:
1. Monitor your cash flow – How much your company is making vs how much you need to spend– if there is going to be a shortfall, something needs to change. There’s lots of software that can help you do that now, some of it even free.
2. Get some financial advice – Have conversations about money with the right people. Your bank manager, an accountant, a mentor.
3. Go on a training course – Even if you have help you should still have a level of understanding of your accounts.
4. Hire some help – If you can, engage a bookkeeper to help you, or an accountant to free you up to doing the work that you love and keep you ontrack with deadlines.
5. Check your attitude – whether you love or hate numbers, it’s your choice! If you’re not sure how to make your business numbers work for you, we have created the perfect event for you. The Making Your Cash Flow event takes place on the 22nd of November at NatWest in Bishopsgate.
Nine exciting and experienced speakers will share their knowledge on key topics such as angel investors, outsourcing, book keeping, your money mindset, wealth creation, increasing your bottom line and much more.
Take advantage of early booking pricing and book now:
If I can get a handle on my numbers, you can too!